First Berlin – GRAND CITY Properties S.A. Research Update (19/05/2020)

First Berlin Equity Research has published a research update on GRAND CITY Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 28.00 to EUR 27.50.

First quarter reporting featured a steady operational performance, despite regulatory and pandemic headwinds. FFO 1 led headline figures with 5% annualised growth. The company will stick to its planned dividend payout, and management adjusted full year guidance to reflect the recent €0.6bn bond issuance and the decision to postpone further acquistions for now. FFOPS 1 is now expected at €1.27 to €1.31 (old: €1.31 - €1.35). With over €1.5bn in liquid assets and well diversified portfolio, we continue to believe GCP is well structured to ride out the ripple effects of the pandemic world. Our price target moves to €27.5 (old: €28) after recalibrating our estimates. Our rating remains Buy.